Alabama Corp. acquired an investment property on January 2, 2022, at a total cost of P8 million. The property has a useful life of 25 years. Its fair value on December 31, 2022, is P9.6 million. The entity used the fair value model to account for its investment property. What is the depreciation expense to be recognized for the yea 2022? a. 384,000 b. 0 c. 256,000 d. 320,000 What is the carrying amount of the investment property on December 31, 2022? a. 8,000,000 b. 9,216,000 c. 9,600,000 d. 7,680,000 What is the gain or loss on fair value change to be recognized for the year 2022? a. 1,600,000 b. 1,920,000 c. 1,536,000 do

Alabama Corp. acquired an investment property on January 2, 2022, at a total cost of P8 million. The property has a useful life of 25 years. Its fair value on December 31, 2022, is P9.6 million. The entity used the fair value model to account for its investment property. What is the depreciation expense to be recognized for the yea 2022? a. 384,000 b. 0 c. 256,000 d. 320,000 What is the carrying amount of the investment property on December 31, 2022? a. 8,000,000 b. 9,216,000 c. 9,600,000 d. 7,680,000 What is the gain or loss on fair value change to be recognized for the year 2022? a. 1,600,000 b. 1,920,000 c. 1,536,000 do

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): Asset Placed in Service Basis Machinery September 12 $470,000 Computer equipment February 10 $ 70,000 Delivery truck August 21 $ 93,000 Qualified real property April 2 $ 1,380,000 (MACRS, 15 year, 150% DB) Total $2,013,000 Question: What is the maximum amount of §179 expense ACW may deduct for 2022? Answer: Question: What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?
1) On January 1, 2020, Harbor Company purchased land and building at a single cost of P20,000,000. On this date, it was determined that the land and building had a fair value of P18,000,000 and P7,000,000 respectively. The entity also incurred legal fees for purchase contract and recording ownership P200,000, and title guarantee insurance P100,000. The entity immediately demolished the building to make way for construction of a new building to be used as owner-occupied. The total contract price and other directly attributable cost to the building amounted to P15,000,000. The entity incurred demolition cost of P350,000. What is the initial cost of the land?
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Assume that ACW Corporation has 2023 taxable income of $1,620,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service 12-September 10-February 21-August 02-April Basis $ 482,000 82,000 105,000 1,392,000 $ 2,061,000 a. What is the maximum amount of §179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. $ $ a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 1,160,000 219,581 X
! Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building §179 expense Assume its taxable income for the year was $63,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Leave no answer blank. Enter zero if applicable. GA Purchase Date Jan-29 Aug-11 Jun-11 c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may deduct for the year? $ Original Basis 148,706 $ 91,000 96,000 240,000
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